Making Tax Digital for landlords explained

At a glance

MTD for Income Tax applies to landlords with qualifying property income above the threshold
Landlords must keep digital records, submit quarterly updates, and complete a year-end final declaration
Submissions must be made through HMRC-recognised software
In-scope from April 2026 for income above £50,000, April 2027 for £30,000, April 2028 for £20,000
You still need to have completed HMRC's own MTD sign-up

Making Tax Digital (MTD) for Income Tax is a government initiative that changes how landlords report rental income and expenses to HMRC. Instead of leaving everything to a single annual submission, in-scope landlords must keep digital records, submit quarterly updates throughout the tax year, and complete a year-end final declaration using HMRC-recognised software. This guide explains what it means in plain English. Reviewed June 2026.

What MTD for Income Tax is

MTD for Income Tax is the requirement to:

Keep digital records of your rental income and expenses
Submit a summary of those figures to HMRC four times a year (quarterly updates)
Make any required year-end adjustments and review the latest calculation
Use software that connects directly to HMRC to make those submissions and final declaration

It replaces the old once-a-year reporting workflow with digital record keeping, quarterly updates, and a year-end final declaration. Rather than adding everything up at the end of the year, you report income and expenses on a rolling basis and then finalise them after the fourth update.

Who it applies to

MTD for Income Tax applies to landlords (and self-employed individuals) whose qualifying income — rental income plus any self-employment income — exceeds HMRC’s income threshold.

Tax year	Income threshold
2026–27 onwards	Over £50,000
2027–28 onwards	Over £30,000
2028–29 onwards	Over £20,000

If your qualifying income is below the threshold, you are not required to use MTD for Income Tax, though you can still choose to do so voluntarily.

What it means in practice

Digital record keeping

You must keep records of your rental income and expenses in a digital format throughout the year. This does not mean a spreadsheet on its own — the records must be kept in software that can connect to HMRC’s MTD systems.

Quarterly updates

You submit a summary of your income and expenses to HMRC four times per year. A quarterly update is not a tax payment — it is a record of your figures so HMRC can track your position through the year.

The four quarters follow the tax year pattern:

Quarter 1: 6 April to 5 July
Quarter 2: 6 July to 5 October
Quarter 3: 6 October to 5 January
Quarter 4: 6 January to 5 April

End-of-year

After the four quarterly updates, you still need to complete an end-of-year process — finalising your figures and submitting a final declaration. This replaces the Self Assessment tax return.

What has not changed

The categories of allowable expenses for landlords remain the same
Quarterly updates are summaries, not tax payments
MTD does not change what you are taxed on — only how and when you report it

Common mistakes

Assuming a spreadsheet is enough — standalone spreadsheets do not meet the MTD digital record-keeping requirement unless they connect to HMRC through a bridging tool
Not signing up with HMRC — software alone is not enough; you need to complete HMRC’s own MTD sign-up
Mixing personal and business transactions — keeping personal transfers separate from your allowable expense records is important for accurate quarterly totals
Missing a quarterly deadline — late submissions can result in penalty points under the new points-based penalty system

How TenancyVault helps

From Solo and above, TenancyVault is designed for landlords who want to manage their MTD records, quarterly submissions, and supported UK-property year-end filing themselves. You can:

Keep digital income and expense records per property
Import bank statements (CSV or PDF) and review transactions
Connect your HMRC account and check your MTD status
Submit quarterly updates directly to HMRC
Complete annual submissions, year-end calculations, and final declaration for supported UK-property workflows
Amend a submitted quarter if needed
Retrieve your HMRC calculation feedback

The workflow is written in plain English — no accountant-speak required.

Not legal or tax advice. This guide is for information only. If you are unsure about your MTD obligations or tax position, consult a qualified accountant or tax adviser.

Related guides

MTD for Income Tax — quarterly updates explained

What a quarterly update is, what it contains, when it is due, and how to submit one to HMRC as a landlord under Making Tax Digital.

How to keep digital records for rental income

What Making Tax Digital requires landlords to record digitally, what counts as an acceptable record, and how to stay organised across multiple properties.

How landlords connect HMRC software

How to connect your HMRC account to MTD-compatible software as a landlord — what the authorisation process involves, what HMRC syncs, and what you can do once connected.

Quarterly deadlines for landlords under Making Tax Digital

The four quarterly update deadlines for England landlords under MTD for Income Tax, what happens if you miss a deadline, and how to stay on top of the filing schedule.